Kovacic is understood to have been lined up for a loan move to Stamford Bridge.

He’s fed up at not playing regular first-team football with the European champions and is keen on a move elsewhere.

Despite a season-long loan deal with the Blues looking set to be completed today, journalist Duncan Castles has claimed Man City are also big fans of the player - and he’d prefer to work for Pep Guardiola.

Speaking on the latest episode of The Transfer Window podcast: “Kovacic is an interesting one.

“It seems he’s been offered to Chelsea to help facilitate the Courtois deal.

“IE: Real Madrid are saying to Chelsea ‘look we’ve got a player here, who is trying to get out of our club, we know you need further reinforcements in midfield, we know you’ve got problems getting a replacement goalkeeper, so let’s take your midfield issue away from you and let you have Kovacic on loan for a season and you can concentrate on getting a goalkeeper in.’

“What is questionable to me is whether Kovacic will agree to that deal.

“He’s one of the players that Txiki Begiristain has been investigating as an answer to Pep Guardiola’s demand for an experienced high-quality midfielder to share duties with Fernandinho.

(Image: GETTY)

(Image: REAL MADRID)

“From what I understand that’s still a live possibility this week.

“To get that deal to happen they’ll have to hope Manchester City don’t come in with a substantial offer because I’d say the likelihood is if Kovacic is given the choice between Manchester City and Chelsea he’ll chose City.”

Chelsea and City have until 5pm tomorrow to complete all their summer shopping.

The Premier League window for incoming signings closes tomorrow, but they can still sell players to clubs outside of England beyond that date.